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Need help understanding the Health Marketplace Tax Credit

I am trying to fill out my son's return for him using TurboTax.  He works various part-time jobs, none of which offer health insurance.  He received a form 1095A for his marketplace plan.  Column A showed his monthly premium, but Column B and C were blank, which is how it's been in prior years.  I went to the IRS credit calculation tool and found the SLSCP premium amount and entered that into Column B.  He did not receive any advance tax credit, so I left Column C blank (and entered $0 when it complained about it being blank).  In the past 3 years, TurboTax computed his tax credit just fine, but this year it's computing $0, and instead putting all his premiums into itemized deductions (he takes the standard deduction)

 

The income eligibility rules say that income must be at least 100 percent but no more than 400 percent of the federal poverty line for their family size (he's single).  The FPL for 2025, for a single person, appears to be $15,650.  His total income is ~$18,000, so it seems to me like he should qualify for the tax credit.

 

Why is TurboTax not calculating a credit?

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5 Replies

Need help understanding the Health Marketplace Tax Credit

Is he Single?

 

Did he indicate that nobody can claim him as a dependent?

 

Can you verify his income is $18,000-ish on line 11a of his Form 1040?

Need help understanding the Health Marketplace Tax Credit

Yes, he is filing Single

Yes, he marked that he cannot be claimed as a dependent by anyone else

His income from line 11a is $17,580

Need help understanding the Health Marketplace Tax Credit

Unless he is claiming a dependent or he is in Alaska, I can't figure out why it isn't calculating a credit.

 

Have you finished the rest of his tax return and gone through the error-check/review, in case that comes up with something?  And double-checked that no credit is showing up on line 9 of Schedule 3 (which flows to line 31 of Form 1040)?

 

Unfortunately, I'm out of ideas, so you might need to call Customer Support, unless anybody else comes along with an idea.

 

 

Need help understanding the Health Marketplace Tax Credit

Thanks for trying to help - I'll go through the full return and see if anything updates it later maybe

Need help understanding the Health Marketplace Tax Credit

OK, I found the issue.  His income was above the FPL, but when I entered his student loan interest for the year, the credit generated by that dropped his AGI on line 11a below the FPL and he lost the Marketplace credit as a result.  If I forego the student loan interest credit, he gets the Marketplace credit which is bigger

 

Thanks for the help, everyone who replied

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